NMI HOLDINGS INC (NMIH) Stock Fundamental Analysis
NASDAQ:NMIH - Nasdaq - US6292093050 - Common Stock - Currency: USD
NMIH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. NMIH scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on NMIH.
1. Profitability
1.1 Basic Checks
In the past year NMIH was profitable.
NMIH had a positive operating cash flow in the past year.
NMIH had positive earnings in each of the past 5 years.
NMIH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NMIH has a Return On Assets of 10.76%. This is amongst the best in the industry. NMIH outperforms 91.09% of its industry peers.
NMIH has a Return On Equity of 16.28%. This is in the better half of the industry: NMIH outperforms 73.27% of its industry peers.
NMIH has a better Return On Invested Capital (12.03%) than 87.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NMIH is above the industry average of 7.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.76% | ||
| ROE | 16.28% | ||
| ROIC | 12.03% |
ROA(3y)11.12%
ROA(5y)10.14%
ROE(3y)17.04%
ROE(5y)15.68%
ROIC(3y)12.43%
ROIC(5y)11.38%
1.3 Margins
The Profit Margin of NMIH (56.20%) is better than 94.06% of its industry peers.
In the last couple of years the Profit Margin of NMIH has grown nicely.
NMIH has a Operating Margin of 77.94%. This is amongst the best in the industry. NMIH outperforms 95.05% of its industry peers.
In the last couple of years the Operating Margin of NMIH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 77.94% | ||
| PM (TTM) | 56.2% | ||
| GM | N/A |
OM growth 3Y4.36%
OM growth 5Y4.16%
PM growth 3Y5.11%
PM growth 5Y4.03%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
NMIH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NMIH has less shares outstanding
Compared to 5 years ago, NMIH has more shares outstanding
The debt/assets ratio for NMIH has been reduced compared to a year ago.
2.2 Solvency
NMIH has a debt to FCF ratio of 1.09. This is a very positive value and a sign of high solvency as it would only need 1.09 years to pay back of all of its debts.
NMIH has a Debt to FCF ratio of 1.09. This is amongst the best in the industry. NMIH outperforms 81.19% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that NMIH is not too dependend on debt financing.
NMIH has a Debt to Equity ratio of 0.19. This is in the better half of the industry: NMIH outperforms 70.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.09 | ||
| Altman-Z | N/A |
ROIC/WACC0.82
WACC14.73%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
NMIH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.19%, which is quite good.
NMIH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.51% yearly.
NMIH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.41%.
The Revenue has been growing by 11.44% on average over the past years. This is quite good.
EPS 1Y (TTM)17.19%
EPS 3Y18.13%
EPS 5Y11.51%
EPS Q2Q%5.94%
Revenue 1Y (TTM)12.41%
Revenue growth 3Y10.3%
Revenue growth 5Y11.44%
Sales Q2Q%7.96%
3.2 Future
NMIH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.68% yearly.
NMIH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.85% yearly.
EPS Next Y5.15%
EPS Next 2Y6.83%
EPS Next 3Y6.68%
EPS Next 5YN/A
Revenue Next Year6.49%
Revenue Next 2Y6.98%
Revenue Next 3Y11.85%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NMIH is valuated cheaply with a Price/Earnings ratio of 7.75.
Compared to the rest of the industry, the Price/Earnings ratio of NMIH indicates a rather cheap valuation: NMIH is cheaper than 82.18% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NMIH to the average of the S&P500 Index (29.63), we can say NMIH is valued rather cheaply.
NMIH is valuated cheaply with a Price/Forward Earnings ratio of 7.37.
82.18% of the companies in the same industry are more expensive than NMIH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NMIH to the average of the S&P500 Index (22.68), we can say NMIH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 7.37 |
4.2 Price Multiples
90.10% of the companies in the same industry are more expensive than NMIH, based on the Enterprise Value to EBITDA ratio.
87.13% of the companies in the same industry are more expensive than NMIH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.2 | ||
| EV/EBITDA | 6 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of NMIH may justify a higher PE ratio.
PEG (NY)1.51
PEG (5Y)0.67
EPS Next 2Y6.83%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
NMIH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.88
-0.31 (-0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.79%
Inst Owner Change-1.46%
Ins Owners1.31%
Ins Owner Change7.99%
Market Cap2.74B
Analysts81.43
Price Target43.61 (25.03%)
Short Float %1.62%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.77%
Min EPS beat(2)-0.71%
Max EPS beat(2)12.26%
EPS beat(4)3
Avg EPS beat(4)5.58%
Min EPS beat(4)-0.71%
Max EPS beat(4)12.26%
EPS beat(8)7
Avg EPS beat(8)5.3%
EPS beat(12)11
Avg EPS beat(12)5.51%
EPS beat(16)14
Avg EPS beat(16)5.27%
Revenue beat(2)0
Avg Revenue beat(2)-3.3%
Min Revenue beat(2)-4.14%
Max Revenue beat(2)-2.45%
Revenue beat(4)0
Avg Revenue beat(4)-3%
Min Revenue beat(4)-4.14%
Max Revenue beat(4)-2.03%
Revenue beat(8)1
Avg Revenue beat(8)-2.2%
Revenue beat(12)5
Avg Revenue beat(12)0.37%
Revenue beat(16)9
Avg Revenue beat(16)1.3%
PT rev (1m)-1.72%
PT rev (3m)-3.39%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-1.12%
EPS NY rev (1m)-2.39%
EPS NY rev (3m)-2.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 7.37 | ||
| P/S | 4.31 | ||
| P/FCF | 7.2 | ||
| P/OCF | 7.07 | ||
| P/B | 1.25 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 6 |
EPS(TTM)4.5
EY12.9%
EPS(NY)4.73
Fwd EY13.57%
FCF(TTM)4.85
FCFY13.89%
OCF(TTM)4.93
OCFY14.15%
SpS8.09
BVpS27.93
TBVpS27.88
PEG (NY)1.51
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.76% | ||
| ROE | 16.28% | ||
| ROCE | 15.44% | ||
| ROIC | 12.03% | ||
| ROICexc | 12.55% | ||
| ROICexgc | 13.95% | ||
| OM | 77.94% | ||
| PM (TTM) | 56.2% | ||
| GM | N/A | ||
| FCFM | 59.9% |
ROA(3y)11.12%
ROA(5y)10.14%
ROE(3y)17.04%
ROE(5y)15.68%
ROIC(3y)12.43%
ROIC(5y)11.38%
ROICexc(3y)12.71%
ROICexc(5y)11.74%
ROICexgc(3y)14.21%
ROICexgc(5y)12.86%
ROCE(3y)15.96%
ROCE(5y)14.62%
ROICexcg growth 3Y5.8%
ROICexcg growth 5Y-1.45%
ROICexc growth 3Y3.23%
ROICexc growth 5Y-3.37%
OM growth 3Y4.36%
OM growth 5Y4.16%
PM growth 3Y5.11%
PM growth 5Y4.03%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.09 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 58.11% | ||
| Cap/Sales | 1.1% | ||
| Interest Coverage | 33.71 | ||
| Cash Conversion | 76.41% | ||
| Profit Quality | 106.59% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC14.73%
ROIC/WACC0.82
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.19%
EPS 3Y18.13%
EPS 5Y11.51%
EPS Q2Q%5.94%
EPS Next Y5.15%
EPS Next 2Y6.83%
EPS Next 3Y6.68%
EPS Next 5YN/A
Revenue 1Y (TTM)12.41%
Revenue growth 3Y10.3%
Revenue growth 5Y11.44%
Sales Q2Q%7.96%
Revenue Next Year6.49%
Revenue Next 2Y6.98%
Revenue Next 3Y11.85%
Revenue Next 5YN/A
EBIT growth 1Y14.06%
EBIT growth 3Y15.11%
EBIT growth 5Y16.08%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y14.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.62%
OCF growth 3YN/A
OCF growth 5YN/A